Five state-run banks raise new-loan interest ratesBy Crystal Hsu / Staff reporterInterest rates for new loans at the nation’s five major state-run banks last month edged up 0.005 percentage points to 1.44 percent on average, as lenders raised borrowing costs to support monetary tightening in a joint bid to curb inflation, the central bank said yesterday. The rate hike came after the central bank last month raised the rediscount rate by 0.125 percentage points for the second time this year to mitigate inflationary pressures. Bank of Taiwan (臺灣銀行), Land Bank of Taiwan (土地銀行), Taiwan Cooperative Bank (合作金庫銀行), Hua Nan Commercial Bank (華南銀行) and First Commercial Bank (第一銀行) followed suit, hiking interest rates for mortgages, consumer and capital loans. New mortgage operations softened by NT$7.88 billion (US$263.4 million) to NT$60.7 billion as interest rate hikes and other unfavorable factors cooled buying interest, the central bank said, adding that lenders also exercised caution and tamed mortgage operations. Interest rates for capital funding gained 0.347 percentage points to 1.905 percent, while interest rates for consumer loans picked up 0.165 percentage points, the central bank said.

Source: Taipei Times July 23, 2022 01:16 UTC